What Is Energy Performance Contracting?
A performance contract is an agreement between an Energy Services Company (ESCO) and a facility owner in which the ESCO engineers and implements facility improvements. The facility owner agrees to repay the ESCO all project engineering and costruction costs. The ESCO guarantees the owner a minimum level of energy savings from energy efficiency upgrades and retrofits and helps the owner secure financing. Over the contract period – typically five (5) to fifteen (15) years – in theory, the savings from reduced utility bills are used to pay for the capital investment in the equipment, the installation and related financing fees. Owners of numerous facility types, including schools, hospitals, and manufacturing and government entities, have used performance contracting to improve facilities performance but it may not be the most efficient implimentation route.
How Can Northern Help?
As the Owner’s Representative we monitor and coordinate all aspects of the performance contract lifecycle: planning, financing , initial RFP bid through project completion.
As Professional Engineers we represent our clients to assist them in evaluation of their performance contracts. We inform and advise our clients of specific technologies and leading practices across the wide range of energy conservation products and strategies.
Northern independently verifies calculated energy savings and methods of energy saving, verifies life cycle economics including cash effective energy conservation measures and evaluates the economic benefit to our client of financing their own projects. In addition, Northern Resources can independently measure and verify the results of a performance contact implemented by others, using its Web-based energy information solutions.
We also review proposed contracts to identify terms and conditions that may not be in the best interest of our clients. As Owner’s Representatives, Northern begins by examining all of your facilities to better understand the nature of your energy use. We then develop a company-wide plan to address energy supply and management at each facility. We provide timely and valuable information, data and innovative solutions through energy tracking web enabled cost, usage and production tracking tools.
We represent owners on energy performance contract projects that involve a wide array of technologies and applications, including lighting, heating, venting, air conditioning, energy management systems, motors, heat exchangers, windows and roofs, and boilers and chillers.
We are professionals experienced at energy efficiency, and we excel at developing, designing and delivering energy solutions. Part of our process involves taking the time to understand our customers’ operations so we can come up with the right solution – one that gives our customers control, lowers costs and enhances their working environments.
Northern Resources is continually expanding our engineering expertise and expanding the capabilities of our products. Our goal is to become one of the leading independent energy management services companies in North America.